Centamin hits milestone as it pays back $1bn cost of Sukari gold mine

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Gold miner Centamin has hit a milestone by building up its cash flow to the point where it has begun sharing its profits with the Egyptian government.

Record production from its Sukari pit and a strong gold price mean that the FTSE 250 company has now paid off the $1bn capital costs of its mine, which has been in development since 2008.

As a result, Centamin will now begin sharing profits with the government slightly earlier than expected, starting with a payment of $28.75m (£23.6m). Under the terms of its agreement, the company will pay the government 40pc of its profits for the next two years, rising to 45pc for two years after that, and ultimately to 50pc.